Short Sale with WAMU/Chase/JP Morgan In AZ

[jberg01]

We built our home in 2000. We refinanced our home in January 2007 with WAMU. We had upgraded the flooring and appliances and landscaped the back yard and rolled all the loans in to one lender.

We had $316,800 (6.25%) first, $39,500 HELOC 2nd (4.00%). The 2nd was to avoid PMI as the Fist was 80% of the appraised value ($396,000).

These are interest only loans. We were advised that we could roll them into one loan when the value of the house was high enough. This seemed to make sense as values were going up all the time. Right!

We have since has another baby and find that this house is too small for our current situation. That coupled with the fact my wife is taking a pay cut this year. I am not getting a pay cut but my company has told us they will not be paying any raises or cost of living adjustments. At least we both still have jobs.

We contacted a Real Estate agent to list the house he told us we can expect to sell for $200,000 - $215,000 based on comps in the area.

We agreed to list it and short sell it as we will never see the value get back to what we owe on it.

I have heard the WAMU/Chase is extremely difficult to deal with on short sales.

We are current on the payments but have been advised to stop paying now that we are selling the house.

Our agent has advised us on what we need to do (Hardship letter, financials, W-2, taxes etc..) to get this started.

I am trying to get past the moral issue of not meeting our obligation to the lender, but i have to think about my family first.

So any advice on dealing with WAMU/Chase/JP Morgan is appreciated.

[Moe Bedard]

Chase can be very difficult to deal with and you will have some time to go before you are all done with this.

Being late may be just one hurdle. You may see a few offers come and go before you are able to come together and get Chase to agree and close in time for your buyers. This seems to b e the most common issue homeowners whop try and short sale is the delay on the banks side and the buyer frustration.

You will need to have patience and hopefully your agent is good. A good agent who knows what they are doing may make all the difference in the world.